Robert Maier | Associate Partner

Innovation Theater

Why it Harms Your Business and How to Foster Genuine Innovation

Innovation is a term that has become almost overused in the modern business world. Companies of all sizes and industries strive to present themselves as innovative to enter new markets. However, this drive often leads to a dead end known as “Innovation Theater.” This refers to superficial innovation activities that appear to be innovative but create no real value.

What is the innovation theater?

The term “Innovation Theater” describes a situation where companies initiate many seemingly innovative activities that, in reality, do not significantly contribute to business growth. These activities often include:

Hackathons with no results: Events aimed at quickly generating new ideas without a clear plan for implementation.
Fancy innovation centers and hubs: Places that serve more as “showrooms” for visitors rather than spaces where real value is created.
Walls covered in post-it notes: Workshops that give the illusion of creativity without producing clear, actionable strategies.

Head of innovation hubs regularly share these challenges with us. Innovation centers are usually beautifully designed and equipped with the latest technology, a real eye-catcher for visitors and executives. However, turning ideas into something that actually creates value is another story.

How to recognise the innovation theater?

There are clear signs that a company is engaging in theater rather than genuine innovation:

Lack of strategic alignment: Innovations should always have a clear goal that fits the company’s overall strategy. Activities without such alignment risk becoming irrelevant quickly.

No measurable results: A quick way to identify Innovation Theater is the absence of concrete, measurable outcomes. Ask yourself: What has really changed due to our innovation efforts? Are there increases in revenue, cost reductions, or other tangible benefits?

Separation from the core business: When innovation takes place in isolated departments or labs and is not integrated into the daily business, the impact on the core business is minimal.

Focus on input rather than outcome: Many companies focus on the number of ideas or projects instead of the actual results and their impact. Successful innovation is measured by its effect, not just activity. This becomes apparent when leadership demands measurable results, for example, due to a change in management.

How to foster genuine innovation

To promote genuine innovation and put an end to theater, the following steps are essential:

Create clear strategic alignment: Every innovation initiative should follow a clearly defined business goal. Ensure your innovation projects align with the company’s overall strategy and lead to measurable business outcomes.
Establish a culture of continuous improvement: Innovation is not a one-time event but an ongoing process. Create an environment that encourages experimentation, learning, and adaptation. Employees should be encouraged to test new ideas and learn from failures.
Measure the right KPIs: Instead of counting the number of ideas or events, focus on Key Performance Indicators (KPIs) that measure real progress and impact, such as revenue growth, market share gains, or efficiency improvements.
Integrate innovation into the core business: Innovation should be part of the company’s daily operations, not a separate department or isolated project. Promote cross-functional collaboration and involve employees at all levels in the innovation process.
Communicate results and impact: Transparent communication about successes and failures is crucial. Share not only the “good news” but also what you’ve learned from failures. This builds trust and shows that your innovation efforts are serious.

Conclusion

Innovation is crucial for a company’s growth and future viability. But innovation for the sake of innovation—or worse, as mere show—can cause more harm than good. Companies should focus on fostering genuine, measurable innovation that contributes to the core business and long-term goals. Only then can the true value of innovation be realized.

Are you ready to recognise the difference between innovation theatre and real innovation? Start today and turn your innovation strategy into a real competitive advantage! 🚀

About us

At Eisbach Partners, we specialize in guiding businesses toward sustainable growth through innovative strategies. Our team of experts combines industry knowledge with hands-on experience to help companies move beyond innovation theater and achieve real, measurable results. We work closely with you to align innovation with your strategic objectives, ensuring every initiative contributes to long-term success. With Eisbach Partners, innovation becomes more than just a buzzword—it becomes a driver of true business value.